USD/SGD continued to trade a subdued range near recent lows, OCBC’s FX analyst Christopher Wong notes.

Bearish momentum on daily chart is waning

“RMB strength, broad USD softness are some factors that continued to underpin SGD strength to some extent. S$NEER was last estimated at ~1.85% above our model-implied mid, with implied lower bound at 1.3010.”

“S$NEER near the stronger side of its band somewhat suggests that additional gains in SGD may continue to “lose pace” vs. its peers although SGD may still appreciate vs a broadly softer USD.”

“USD/SGD was last at 1.3074. Bearish momentum on daily chart is waning while RSI rose from near oversold conditions. We remain somewhat cautious of rebound risks. Resistance here at 1.31 and 1.3210 (21 DMA). Support at 1.30, 1.2960 levels.”